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Old 04-07-2004, 05:56 AM
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Default North Carolina used boat sales tax

Does North Carolina have a sales tax on a used boat? I am purchasing the boat in florida, which has a 6% sales tax. If I document the boat in NC. then move the boat to say Virginia Beach do I have to pay sales tax or property tax? Thanks.
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Old 04-07-2004, 06:02 AM
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Default RE: North Carolina used boat sales tax


I believe you pay the sales tax in the state you register the boat in. I boat on FLA and reg in MA and they (MA) got the sales tax. Someone's gonna get it regardless......unless you move to NH and they don't have sales tax......they have fees!!
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Old 04-07-2004, 06:21 AM
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Default RE: North Carolina used boat sales tax

Georgia doesn't tax owner to owner transactions....only if the used boat is sold by the dealer is tax paid.
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Old 04-07-2004, 07:11 AM
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Default RE: North Carolina used boat sales tax

It may depend upon the county in NC. Why keep the boat in VA but register it in NC? Seems to me, the locale in which the boat is kept would rightfully be able to claim for tax reasons. That said, NC boat registry is done by the Dept. of Fish and Wildlife, the same organization that handles fishing licences. The registration procedure is no more complex, I registered mine at a local marina for a nominal fee. What happens for tax purposes is up to another organization, the local county, I believe. I am sure sales tax is expected to be covered in your annual tax return. There is no link as far as the boat is concerned between Fish and Wildlife and DMV. There is on the trailer, however.

Also, NC is a no-title state for boats. A lender will require a title for a boat that is financed, however, cash transactions do not require a title. I suppose any transaction with a dealer would include sales tax.

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Old 04-07-2004, 08:26 AM
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Default RE: North Carolina used boat sales tax

Whoa Jocko................. my craft was purchased AND registered in NC and there IS a title..... Try selling a boat without one and you'll have hell to pay from the buyer. If you're in fererence to the little form that comes with your registration packet, I believe that is for smaller boats that NEVER had a title.
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Old 04-07-2004, 09:20 AM
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Default RE: North Carolina used boat sales tax

I just bought a used boat in Florida and registered in NC. You do not pay sales tax on this transaction in Florida if you are buying a brokerage boat or from an individual. If you are buying from a dealer he can charge sales tax.

In NC, when registering, you do not need to title the boat unless your financial institution requires it for the loan. There also is no sales tax charged on the purchase when you register the boat, but when you go to DMV to register the trailer you will pay a 3% tax, plus title, plus a million other things. My trailer registration etc.. cost over $100 while the boat registration process cost $53
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Old 04-07-2004, 09:30 AM
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Default RE: North Carolina used boat sales tax


If you are planning to buy a boat in FL, leave and operate the boat in FL, but Register it in another state due to tax reasons makes sure you research that. It can be done, but there are some regulations concerning the boat must be take out of FL waters for so many days.

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Old 04-07-2004, 09:46 AM
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Default RE: North Carolina used boat sales tax

I just went through this process in NC about a month ago on my new to me boat. The boat does not have to have a title. On the previous owners registration it has a little box marked title that will be marked Y if it does, N if it does not. You need a notarized bill of sale and the registration and title if it has one, along with the title to the trailer. My costs were a total of $76 dollars broken down as follows. $25 for registration and 3 year boat sticker, $35 for new trailer title, $10 for new trailer tag, $6 tax on trailer(2000 magic tilt aluminum). This was all registered in Pender county. You can get a title for the boat if you want ($35) by I did not bother as I paid cash for the boat and did not have a lender to deal with. I am pretty sure you have to be a resident of NC to register a boat here but I could be wrong.
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Old 04-07-2004, 11:40 AM
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Default RE: North Carolina used boat sales tax

My boat doesn't have a title. I register it in NC and was given an option whether I wanted a title or not when I bought it. I chose not to and used a bill of sale. I didn't pay any sales tax when I bought the boat. But of course the tax man comes every year, but it seems like much more than that.
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Old 04-07-2004, 11:49 AM
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Default RE: North Carolina used boat sales tax

Same as round2it - Boats only need to be titled if financed and required by the lendor. The trailer does have to be titled. No sales tax, just annual property tax. If buying from a state that doesn't require a title for the trailer, be sure to get some acceptable documentation that the seller "owned" the trailer. (ie. the original invoice showing sale to the current owner, must include the serial number)
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Old 04-07-2004, 12:54 PM
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Default RE: North Carolina used boat sales tax

thanks for the replies,
Ya'll keep saying "title" were as I want to document with the Coast Guard in the state of North Carolina. Here in Virginia the sales tax is 2% of purchase price. that amount will pay for a lot of offshore fishing gear if I don't have to pay it. I will keep it in Va Beach and pay personal property in the city that I keep it. The boat will be used in both states. I plan to follow the tuna.
Thanks
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Old 04-07-2004, 01:41 PM
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Default RE: North Carolina used boat sales tax

If the boat has ever been financed in NC, there is a title floating around. You cannot sell the boat w/o the title if it has one. If I buy a boat new and pay cash, it will not have a title. If I sell the boat tomorrow and the new buyer has to finance the money. he will have to apply for and get a title. I have owned both. If it has had one in it's history you cant pretend it is not titled and sell it. You will get a nastygram from NC Wildlife and wont be able to register it. The last boat I bought (from a broker) told me the boat did not have a title. When I went to get it registered I indeed found a title out there in space that still had a lien on it. It wound up not costing me anything to get the issue resolved just months and months of hassle. BUYER BEWARE
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Old 04-07-2004, 01:47 PM
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Default RE: North Carolina used boat sales tax

If a broker in NC is adding sales tax in NC, he is adding to his own profit. Oldest trick in the book. Sales tax only applies to the trailer. I'm not sure regarding new boats.
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Old 04-07-2004, 03:35 PM
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Default RE: North Carolina used boat sales tax

So is what you're saying fryedaddy, is you want to document the boat with a North Carolina hailing port and keep the boat in Virginia, hoping to avoid Virginia's property tax? Before going to the trouble, check with the marina and see if they are required to give a list of tenants to the county, or if the county comes around and looks for boats.

It took Charleston County no time at all to find my boat with a Maryland hailing port when I moved here. They even have a little skiff that they run behind people's houses looking for boats.

However, when I bought a new boat out of state and documented it, I never had to pay the SC sales tax, but it's capped at $300 so they probably don't bother.

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Old 04-07-2004, 05:21 PM
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Default RE: North Carolina used boat sales tax

One of the problems with Florida boats (smaller ones anyway) is the trailer. Florida doesn't title trailers, at least the smaller ones, but NC does. Registering an untitled Florida trailer in NC that wasn't bought from a dealer can be a real PITA. Went through that several years ago with my Father-in-Law. Sold him my boat and trailer when I was stationed in Florida (he was in NC). Everything was cool until he noticed the Fl tag had expired. I offered to renew it in Fl for him, but being a strickler for detail (and a Father-in-Law), he wanted to get an NC tag. We finally got it done, but the details escape me.
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Old 04-07-2004, 09:46 PM
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Default RE: North Carolina used boat sales tax

when I was in the boating business -- we had the same problem with boat and trailer from Ohio--- If the boat/trailer is not too old you can get OSM from the company and then apply for a title---- Good advise was given in post -- get a title otherwise someone may come knocking on your door with a lien and has the title ! attorney are way more than taxes-----PS 10 days to get boat out of Florida after buying
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Old 04-08-2004, 12:07 AM
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Default RE: North Carolina used boat sales tax

Still unclear as to what you're asking. Sounds like you know you'll have to pay the 6% tax in Florida. Are you asking if you also will have to pay another 2% sales tax in Virginia? I would certainly assume not, since you're paying the Florida sales tax.

As to personal property tax, if you're going to keep it close to even amount of time in both states, I'd claim it in the location with the cheapest property tax rate.

So... is there a sales tax in NC? On new boats from dealers? Owner to owner used boats? Out of state brokerage boats? Out of state new boats?

JB
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Old 04-08-2004, 06:50 AM
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Default RE: North Carolina used boat sales tax

one warning about va. I lived in the district, and VA is very aggressive about ferreting out and getting personal property tax on cars. They have tip lines and patrols set up just to catch folks with out of state plates living in va.

I would ask around and see if its the same with boats. I would not be surprised if they are as aggressive on the water.

My boat is registered in DE but lives in MD. I have never had a problem, but the value is so low, its not worth the effort. I will change when the registration comes up.
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